Company A has developed a new item. They sell the item directly to multiple retailers who...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Company A has developed a new item. They sell the item directly to multiple retailers who sell them to end-users. The following details their first year sales results and expenses. Gross Sales Revenue to Retailers Trade Promotion to Retailers (10% of the list price) $ Net Sales Revenue to Retailers Cost of Goods Sold Advertising Expense Expense for Consumer Promotions Corporate Overhead Research & Development Costs Sales & Marketing Administration Expenses es is s List Price to Retailers Number of Cookstoves Sold to Retailers $ $ ՄԴ ԱԴ ԱԴ $ $ is es es $ $ $ $20/unit $ 3,000,000.00 300,000.00 2,700,000.00 1,200,000.00 200,000.00 100,000.00 200,000.00 100,000.00 300,000.00 150,000.00 Question: Assume Company A spends an additional $100,000 on advertising and they think they can sell 80,000 more items to the retailers. They will continue to offer retailers a trade promotion of 10% promotion of the items list price. What will be the Total Marketing and Sales Expenses, Net Marketing Contribution, Marketing ROS, and Marketing ROI? Company A has developed a new item. They sell the item directly to multiple retailers who sell them to end-users. The following details their first year sales results and expenses. Gross Sales Revenue to Retailers Trade Promotion to Retailers (10% of the list price) $ Net Sales Revenue to Retailers Cost of Goods Sold Advertising Expense Expense for Consumer Promotions Corporate Overhead Research & Development Costs Sales & Marketing Administration Expenses es is s List Price to Retailers Number of Cookstoves Sold to Retailers $ $ ՄԴ ԱԴ ԱԴ $ $ is es es $ $ $ $20/unit $ 3,000,000.00 300,000.00 2,700,000.00 1,200,000.00 200,000.00 100,000.00 200,000.00 100,000.00 300,000.00 150,000.00 Question: Assume Company A spends an additional $100,000 on advertising and they think they can sell 80,000 more items to the retailers. They will continue to offer retailers a trade promotion of 10% promotion of the items list price. What will be the Total Marketing and Sales Expenses, Net Marketing Contribution, Marketing ROS, and Marketing ROI?
Expert Answer:
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
Marco Company reported net credit sales of $1,500,000, cost of goods sold of $800,000, and gross profit of $700,000. Accounts Receivable were $175,000 and $225,000 at the beginning and end of the...
-
List an additional research question that can be addressed with a GLM model. Conduct the test.
-
Multiple Choice Questions: 1. Demand for consumer goods will be affected by which of the following? a. Disposable income b. Credit conditions c. The level of debt outstanding d. Expectations about...
-
Learning by doing is an integral part of the course experience albeit online. The intent of this assignment is for you to demonstrate your ability to apply course content. Thus in the Marketing...
-
Use the indirect method to determine cash flows from operating activities An accountant for Farve Enterprise Companies (FEC) computed the following information by making comparisons between FECs 2012...
-
This is a challenge problem. A well-known insurance company offers a poli
-
How much knowledge about information security do internal and external audi tors need to be effective?
-
Presented below is selected information related to Matt Perry Inc. as of December 21, 2012. All these items have debit balances. Cable television franchises .........Film contract rights Music...
-
If full - time employees come into work early, stay after scheduled hours, or come in to the workplace on days off,
-
The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory...
-
Explain the current income tax system. (briefly)
-
Luke's Wedding Cakes creates elaborate wedding cakes. Each cake sells for $500. The variable cost of baking the cakes is $200 and the fixed cost per month is $6,000. Break- even point, as calculated...
-
5. At June 30, 2016, before any adjustments for errors and other year-end adjusting entries, a company's allowance for bad debts was a credit balance of $39,000. Accounts receivables totalled...
-
Actual direct materials cost = $ 1 . 0 5 per pound Standard direct materials cost = $ 1 . 1 0 per pound Actual quantity purchased and used = 2 , 0 0 0 pounds Standard quantity that should have been...
-
Hi - Tech Incorporated produces two different products with the following monthly data Cell GPS Total Selling price per unit 1 0 0 4 0 0 Variable cost per unit 4 0 2 4 0 Expected unit sales 2 1 , 0 0...
-
On January 1 , 2 0 0 9 , Korman Company purchased 9 % bonds having a maturity value of $ 1 , 0 0 0 , 0 0 0 for $ 9 6 2 , 0 0 0 . The bonds provide the bondholders with a 1 0 % yield. The coupon is...
-
Explain how base editing and prime editing, as modifications of the CRISPR-Cas9 system, differ in their mechanisms and potential applications compared to traditional double-strand break-mediated...
-
Kims Konstructions has assembled the following data for a proposed straw-reinforced brick maker (SRBM): SRBM Cost: $26,000 Life: 5 years Revenue (p.a.) $11,000 Operating Expenses (p.a.) $3,000...
-
The notes to a firms financial statements reveal that the obligations for postretirement health care benefits at the end of 2017 total $2.1 billion. The fair value of plan assets for these benefits...
-
Explain the theory behind the free cash flows valuation approach. Why are free cash flows value-relevant to common equity shareholders when they are not cash flows to those shareholders, but rather...
-
Exhibit 4.22 presents selected operating data for three retailers for a recent year. Macy??s operates several department store chains selling consumer products such as brand-name clothing, china,...
-
Alta Mine Company, a restaurant that had always made cash sales only, adopted a new policy of honoring several nationally known credit cards. Sales did not increase, but many of Alta Mine's regular...
-
How does an annual audit by a CPA firm provide assurance that a company's accounts receivable and notes receivable are fairly presented in the company's financial statements?
-
How is the accounts receivable turnover rate computed? Why is this rate significant to short-term creditors?
Study smarter with the SolutionInn App